Inflation Reduction Act Tax Credits: Cutoff Dates and Repeal Filing

The One Big Beautiful Bill Act, signed on July 4, 2025, repealed most of the consumer-facing Inflation Reduction Act tax credits well ahead of their original expiration dates.¹ Six major credits covering electric vehicles, home energy upgrades, and rooftop solar now end on staggered cutoffs between September 30, 2025 and June 30, 2026. If you bought or installed qualifying property before the cutoff that applies to it, you can still claim the credit on your 2025 return.

The Cutoff Dates

Each repealed credit has its own end date, and the language matters. Some credits end based on when a vehicle is “acquired”; others turn on when property is “placed in service” or when the expenditure is made.¹

New Clean Vehicle Credit (Section 30D): no credit for vehicles acquired after September 30, 2025.
Used Clean Vehicle Credit (Section 25E): no credit for vehicles acquired after September 30, 2025.
Commercial Clean Vehicle Credit (Section 45W): no credit for vehicles acquired after September 30, 2025.
Energy Efficient Home Improvement Credit (Section 25C): no credit for property placed in service after December 31, 2025.
Residential Clean Energy Credit (Section 25D): no credit for expenditures made after December 31, 2025.
EV Charger and Refueling Property Credit (Section 30C): no credit for property placed in service after June 30, 2026.

Vehicles Acquired by September 30, 2025

All three vehicle credits close on the same date. A vehicle counts as acquired by that date if you entered into a binding written contract and made a payment on or before September 30, 2025. A nominal down payment or a trade-in is enough to satisfy the payment requirement, and you can still claim the credit when the vehicle is later placed in service.²³

The new clean vehicle credit under Section 30D is worth up to $7,500, split into two $3,750 pieces tied to critical mineral sourcing and battery component requirements. A vehicle must meet both tests for the full amount. Price caps limit which vehicles qualify: $80,000 MSRP for vans, SUVs, and pickup trucks, and $55,000 for everything else. Income caps also apply, based on the lower of your income in the delivery year or the prior year: $300,000 for joint filers, $225,000 for head of household, and $150,000 for all other filers.⁴

The used clean vehicle credit under Section 25E equals 30% of the sale price up to a maximum of $4,000.⁵ The vehicle must be at least two model years old, priced at $25,000 or less, purchased from a licensed dealer, and have a battery of at least 7 kilowatt-hours.³ Income limits are tighter than for new vehicles: $150,000 joint, $112,500 head of household, and $75,000 for other filers.

The commercial clean vehicle credit under Section 45W is available to businesses and tax-exempt organizations. It equals 15% of the vehicle’s cost, or 30% if the vehicle has no gasoline or diesel engine, capped at $7,500 for vehicles under 14,000 pounds and $40,000 for heavier vehicles.⁶ No income limits or MSRP caps apply.

Home Energy Property Installed by December 31, 2025

Two home credits end at the close of 2025, but they measure eligibility differently. The Section 25C home improvement credit turns on when the property is placed in service, meaning installed and operational. The Section 25D residential clean energy credit turns on when the expenditure is made.¹

The Energy Efficient Home Improvement Credit covers 30% of the cost of qualifying upgrades, subject to annual caps. The general annual limit is $1,200, with sub-limits of $250 per exterior door ($500 total), $600 for windows and skylights, and $150 for a home energy audit. Heat pumps, heat pump water heaters, and biomass stoves or boilers sit under a separate $2,000 annual cap that stacks on top of the $1,200, so a homeowner installing a heat pump and replacing windows in the same year can claim up to $2,600 in combined credits.⁷ The credit is non-refundable and has no carry-forward.⁸

The Residential Clean Energy Credit covers 30% of the total installation cost of larger renewable systems, with no annual dollar cap for most equipment. Qualifying property includes solar electric panels, solar water heaters, small wind turbines, geothermal heat pumps meeting Energy Star requirements, and battery storage with capacity of at least 3 kilowatt-hours. Both materials and labor count. Unused 25D credit carries forward to future tax years.⁹

The One Credit Still Available in 2026

Section 30C, the alternative fuel vehicle refueling property credit, is the only IRA consumer credit that survives into 2026. It covers 30% of the cost of installing EV charging equipment or alternative fuel refueling property at your home, up to $1,000 per charging port.¹⁰

Eligibility carries a geographic restriction. The charger must be located in a low-income community or non-urban census tract. You can verify your address using the IRS 2020 Census Tract Identifier tool to find your 11-digit tract code, then check it against the IRS list of eligible tracts.¹⁰ The equipment must be new, installed at your primary residence, and placed in service during the tax year you claim it. The credit expires for property placed in service after June 30, 2026.¹

Filing for the Credits on Your 2025 Return

Vehicle credits are claimed on Form 8936. You need the vehicle identification number and the date the vehicle was placed in service on Schedule A of the form, with a separate Schedule A for each vehicle.¹¹ The dealer must have reported the sale to the IRS through the Energy Credits Online portal at the time of purchase for the vehicle to be eligible.¹²

Home credits use Form 5695. Part I handles the 25D residential clean energy credit (solar electric costs go on Line 1). Part II handles the 25C home improvement credit (windows and skylights go on Line 19a).¹³ The form attaches to your Form 1040.¹⁴

Keep the paperwork. Save manufacturer certification statements confirming that each product met efficiency standards, and hold on to itemized receipts that break out materials from labor. For a vehicle, save the purchase agreement and any documentation establishing the acquisition date, since that date decides whether the September 30, 2025 cutoff was met.

What Happens to Unused Credit After Repeal

Most of these credits were non-refundable, which means they only reduce your tax bill to zero. What happens to any excess depends on the credit.

Section 25D residential clean energy credits carry forward. A $9,000 solar credit against a $6,000 tax bill leaves $3,000 to apply on your 2026 return.⁹ Repeal for post-2025 expenditures does not wipe out carry-forward balances earned in earlier years. Unused 25D credit from a 2024 or 2025 installation can still be applied against future tax liability.

Section 25C home improvement credits do not carry forward. Any amount that exceeded your 2025 liability is gone.⁸ For vehicle credits transferred to a dealer at the point of sale, carry-forward is not a question since the credit was applied as a price reduction. If you did not transfer the credit and claimed it on your return, the same non-refundable treatment applies.

1
Internal Revenue Service. FAQs for Modification of Sections 25C, 25D, 25E, 30C, 30D, 45L, 45W, and 179D Under Public Law 119-21
2
Internal Revenue Service. Credits for New Clean Vehicles Purchased in 2023 or After
3
Internal Revenue Service. Used Clean Vehicle Credit
4
Office of the Law Revision Counsel. 26 USC 30D – Clean Vehicle Credit
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Office of the Law Revision Counsel. 26 US Code 25E – Previously-Owned Clean Vehicles
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Office of the Law Revision Counsel. 26 US Code 45W – Credit for Qualified Commercial Clean Vehicles
7
Office of the Law Revision Counsel. 26 US Code 25C – Energy Efficient Home Improvement Credit
8
Internal Revenue Service. Energy Efficient Home Improvement Credit
9
Office of the Law Revision Counsel. 26 USC 25D – Residential Clean Energy Credit
10
Internal Revenue Service. Alternative Fuel Vehicle Refueling Property Credit
11
Internal Revenue Service. About Form 8936, Clean Vehicle Credit
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Internal Revenue Service. Register Your Dealership to Enable Credits for Clean Vehicle Buyers
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Internal Revenue Service. Instructions for Form 5695
14
Internal Revenue Service. Form 5695 – Residential Energy Credits